Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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(i) Organizations can target training to improve the inherent negative
relationship between a work group’s diversity and its interpersonal
processes and group dynamics.
(ii) Managers can seek ways to help employees ease the tensions of
working in diverse groups.
(iii)Steps could be taken to reduce the negative effects of unconscious
stereotyping and increase the use of group goals in heterogeneous
groups.
III. Barriers and Challenges to Managing Diversity See Slides 2-32, 2-35, 2–
36
i) Organizations encounter a variety of barriers when attempting to implement
diversity initiatives.
ii) Common barriers to implementing a successful diversity program include:
(1) Inaccurate stereotypes and prejudice.
(2) Ethnocentrism.
(3) Poor career planning.
(4) A negative diversity climate.
(a) Diversity climate: Employees’ aggregate perceptions about an
organization’s policies, practices, and procedures pertaining to
diversity. See Slide 2-34
(5) An unsupportive and hostile work environment for diverse employees.
2–16
(6) Lack of political savvy on the part of diverse employees.
(7) Difficulty in balancing career and family issues.
(8) Fears of reverse discrimination.
(9) Diversity is not seen as an organizational priority.
(10) The need to revamp the organization’s performance appraisal and
reward system.
(11) Resistance to change.
IV. Organizational Practices Used to Effectively Manage Diversity
i) R Roosevelt Thomas Jr’s Generic Action Options See Slides 2-37,
2-39
(1) Option 1: Include/Exclude
(a) Primary goal is to either increase or decrease the number of diverse
people at all levels of the organization.
(2) Option 2: Deny
(a) Denying that differences exist.
(3) Option 3: Assimilate
(a) Believing all diverse people will learn to fit in or become like the
dominant group.
(4) Option 4: Suppress
(a) Differences are squelched or discouraged.
(5) Option 5: Isolate
Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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(a) Maintains the current way of doing things by separating the diverse
person.
(6) Option 6: Tolerate
(a) Entails acknowledging differences but not valuing or accepting them.
(7) Option 7: Build Relationships
(a) Addresses diversity by fostering quality relationships.
(8) Option 8: Foster Mutual Adaptation
(a) People are willing to adapt or change their views for the sake of
creating positive relationships with others.
(b) The Real World/Real People: UnitedHealthcare Fosters Mutual
Adaptation provides an example of this approach.
(9) Conclusions about Action Options
(a) Exclusion, denial, assimilation, suppression, isolation, and toleration
are among the least preferred options.
(b) Inclusion, building relationships, and mutual adaptation are the
preferred strategies.
(c) Mutual adaptation is the only approach that unquestionably endorses
the philosophy behind managing diversity.
(d) Choosing how to best manage diversity is a dynamic process that is
determined by the context at hand.
Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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BACK TO THE CHAPTER-OPENING CASE
1. Which layers of diversity from Figure 2-1 contributed to the sexual harassment
experienced by Michelle Barfield?
a. The internal dimension of gender was one layer of diversity evident in this
2. Which of the potential causes of discrimination played a role in Barfield’s
experience at the Arizona Department of Corrections?
a. One potential cause of discrimination that likely played a role is the
3. Based on the process model of diversity, what should management at the
Arizona Department of Corrections do to reduce future incidents of sexual
harassment?
a. According to the process model of diversity, managers should seek to
2–19
4. Which barriers and challenges to managing diversity played a role in what
happened to Michelle Barfield?
a. Several of the barriers and challenges to managing diversity seem to be
present. Barrier #11: Resistance to Change is likely present. Though
1. What is the business case that is driving LeasePlan’s interest in managing
diversity? Discuss.
a. At the root of this case is competitive advantage. LeasePlan does not
2. Compare and contrast the extent to which LeasePlan is using principles from
affirmative action and managing diversity. Explain your rationale.
a. Affirmative action focuses on achieving equality of opportunity in an
Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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3. To what extent are LeasePlan’s efforts consistent with recommendations derived
from Alice Eagly and Linda Carli? Discuss.
a. Eagly and Carli discuss the “labyrinth” waiting for women even if they get
4. Which of R Roosevelt Thomas Jr’s eight generic diversity options is LeasePlan
using to manage diversity? Explain.
a. LeasePlan is working to include more women at higher levels of the
5. While LeasePlan’s diversity initiative is clearly working, what recommendations
would you make for improving their program? Explain.
a. Answers to this question will vary according to students’ perceptions and
preferences.
LEGAL/ETHICAL CHALLENGE: Should Joseph Casias Be Fired by Walmart?
What Would You Do if You Were an Executive at Walmart?
1. Give Casias his job back. He is a great employee and is not violating state law
about using marijuana for medical conditions.
2. Zero tolerance should be applied, and he should be fired. Regardless of what
state law says, it is illegal under federal law to use marijuana. Standards for
marijuana should be the same as any other drug.
3. He should be fired because he presents a safety hazard to himself and others.
The company must protect all employees from people who use drugs.
Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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4. Invent other options. Discuss
Discussion:
Employers are increasingly likely to find themselves in similar situations as Walmart with
more states passing legislation to de-criminalize medical marijuana use. Currently, 16
states have laws allowing the use of medical marijuana and protect legal users from
As more states allow for medical marijuana use and specifically preclude employers
from firing employees for using it, employers are left with little guidance. Employers do
have an obligation to protect their customers and employees from harm, and thus it is
Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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INTERNET EXERCISE
http://www.mcdonalds.com/corp/values.html
This chapter examined approaches for effectively managing diversity. Black Enterprise
magazine published its 7th annual “40 Best Companies for Diversity” list in July 2011.
The ranking for the 40 best firms was based on four components of diversity: Supplier,
Senior Management, Board of Directors and Employee Base. McDonald’s is a firm that
has made the “40 Best Companies for Diversity” list for seven consecutive years and it
is regarded as strong in all four components of diversity. The purpose of this exercise is
to explore the webpage for McDonald’s to see what you can learn about the firm’s
approach to managing diversity.
Go to the “Values in Practice” page of McDonald’s at
http://www.aboutmcdonalds.com/mcd/csr.html. Click on the “Employee Experience”
section and then read the “Inclusion & Diversity,” “Employment Value Proposition,” and
“Talent Management” sections. There is also a 3 minute video clip posted on YouTube
by McDonald’s entitled “Managing Success” that is insightful. You can access it from
the “Videos” list on the “Values in Practice” page or directly from YouTube at
http://www.youtube.com/watch?v=O3htuyS1D34.
Questions:
1. Why do you think McDonald’s corporation has made Black Enterprise’s “40 Best
Companies for Diversity” list seven years in a row? Discuss what evidence you
found that makes the firm deserving of this award.
2. Chapter 2 describes eight diversity initiatives. What initiatives are being
implemented by McDonald’s?
3. What barriers and challenges do you think McDonald’s experiences in managing
its diversity?
4. With its emphasis on using part-time workers, McDonald’s employs a variety of
age groups ranging from teenagers to older employees. What challenges does
the firm likely face with generational differences and how can the firm best draw
upon the strengths of each generational cohort described in Table 2-1?
INSTRUCTIONAL RESOURCES
1. Multiple self-assessment and group exercises are provided in “An Instructor’s
Guide to an Active Classroom” by A. Johnson and A. Kinicki, (McGraw-Hill/Irwin,
2006).
2–23
2. A series of activities designed to help students develop diversity awareness is
discussed in “The Personal Map: A Lesson in Similarities, Differences, and the
Invisible” by D. Litvin and B. Betters-Reed in Journal of Management Education,
Vol. 29(2), pp. 199-217.
3. An exercise designed to facilitate awareness of unconscious biases prejudices
and assumptions that influence judgment is found in “Musavi-Lari: An
Experiential Exercise in Diversity Awareness” by N. Berger in Journal of
Management Education, 2001, Vol. 26(6), pp. 737-745.
4. A special issue entitled “Teaching Diversity in the Management Classroom:
Perspectives, Challenges, Approaches, and Tools” was published in Journal of
Management Education, 1998, Vol. 22(2).
5. This book expands on some of the most important themes of the chapter and can
be used to expand this discussion in the classroom: Race, Ethnicity, Gender, and
Class: The Sociology of Group Conflict and Change by Joseph F. Healey (Pine
Forge Press, 2009).
6. The sometimes controversial issues surrounding diversity management is
discussed in “Seizing the Moment: Talking about the ‘Undiscussables’” by A.
Baker in Journal of Management Education, 2004, Vol. 28(4), pp. 693-706.
7. The impact of gender and age on perceptions of career outcomes is discussed in
“Gender, Age, and the MBA: An Analysis of Extrinsic and Intrinsic Career
Benefits” by R. Simpson et al. in Journal of Management Education, 2005, Vol.
29(2), pp. 218-247.
8. The impact of intragroup diversity on learning outcomes is described in “A Fair
Go for All? The Impact of Intragroup Diversity and Diversity-Management Skills
on Student Experiences and Outcomes in Team-Based Class Projects” by J.
Shaw in Journal of Management Education, 2004, Vol. 28(2), pp. 139-169.
9. Effectively managing diversity in the classroom is discussed in “High–
Performance Classrooms for Women? Applying a Relational Frame to
Management/Organizational Behavior Courses” by E.H. Buttner in Journal of
Management Education, 2002, Vol. 26(3), pp. 274-290.
10. The overlap (or lack thereof) between diversity issues taught in the classroom
and diversity needs of organizations is the topic of “Teaching Diversity: A Study
of Organizational Needs and Diversity Curriculum in Higher Education” by N. Day
and B. Glick in Journal of Management Education, 2000, Vol. 24(3), pp. 338-352.
Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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TOPICAL RESOURCES
1. A modern perspective on the glass ceiling can be found in Newsweek’s “There’s
No Glass Ceiling for People Who Are Good” by T. Dokoupil, 2009, Vol. 153(14),
p. 9.
2. The impact of global heterogeneity in the workplace is examined in “Managing
Diversity: Toward a Globally Inclusive Workplace” by C. Barzantny in Academy of
Management Learning & Education, 2007, Vol. 6, pp. 285-286.
3. Gender diversity in groups and group identification is examined in “Why Does
Dissimilarity Matter? Exploring Self-Categorization, Self-Enhancement, and
Uncertainty Reduction” by P. Chattopadhyay et al. in Journal of Applied
Psychology, 2004, Vol. 89(5), pp. 892-900.
4. The power of cultural values is examined in “The Impact of Cultural Values on
the Acceptance and Effectiveness of Human Resource Management Policies
and Practices” by D. Stone et al. in Human Resource Management Review,
2007, Vol. 17(2), pp. 152-165.
5. An interesting account of the glass ceiling effect can be found in “Through the
Labyrinth: The Truth about How Women Become Leaders” by A. Eagly and L.
Carli (Harvard Business School Press Books, 2007).
6. A new twist on the “old boys network” can be found in “The New Girls Network”
by J. Roberts. Forbes, 2007, Vol. 179(10), pp, 116-118.
VIDEO RESOURCES
1. More information on diversity in the workplace can be seen in the video
“Multicultural Workplace” (Phoenix Learning Group, Inc.).
2. Educational mismatches are explored in the film “Career Escalator: Education
and Job Competition” (Learning Corporation of America).
3. The problems facing female managers are analyzed in the film “Women in
Management” (CRM/McGraw-Hill).
4. Factors influencing behavior and perceptions in a diverse workforce are covered
in the film “Managing Diversity” (CRM).
5. Building effective working relationships between men and women is the focus of
the film “Men and Women: Partners at Work” (CRM).
Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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6. A comprehensive series exploring gender, sexual orientation, race, ethnicity,
language, religion, age, and physical ability issues is presented in “Diversity
Series” (CRM).
7. Diversity as a competitive advantage is covered in the film “Dynamics of
Diversity” (American Media Incorporated).
8. “The Mosaic Workplace” is a 10-part series on diversity (Films for the Humanities
& Sciences).
9. “The Diverse Workplace” is covered in eight videos by Insight Media.
10. In September of 2010, the CBS news program “CBS Sunday Morning” aired a
profile of how the Germany automotive company BMW is changing its production
processes to address its aging workforce. As of August 2011, a link to the video
was available at:
http://www.cbsnews.com/stories/2010/09/05/sunday/main6837469.shtml
DISCUSSION QUESTIONS
1. One of the fastest growing demographic groups in the United States is the
Hispanic population. Discuss how companies might need to adjust their
business strategies to target the Hispanic consumer population and to effectively
manage the diversity of their Hispanic workforce.
2. As women continue to break the glass ceiling and move into all levels of
management, what skills do they need to navigate the labyrinth that awaits
them?
3. Discuss how companies can effectively manage diversity when employees from
the four generational cohorts currently in the workforce discussed in Table 2-1
must work together.
4. What can be done to fill the predicted shortage of skilled and managerial talent?
5. Discuss what firms can do to effectively tap the benefits that diversity can provide
while avoiding the negative outcomes of diversity.
SUPPLEMENTAL EXERCISE 1 – HIRING TIME
APPLICATION
This exercise puts students in the role of either an individual on the job market or of an
employer looking to hire. This exercise is dynamic and interactive. Conceptually, this
Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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gives you the opportunity to introduce issues such as diversity management and
realistic job previews (including misconceptions about what the job offers) in an
interesting and engaging way. To prepare, reserve a number of breakout rooms (or any
smaller spaces that provide some privacy). You will need 1 space for every 6 students
in your class. In a pinch, this can be done by moving students around to the corners of
the classroom or the hallway. Assign half the class to the role of “applicant” and the
other half to the role of “employer.” Applicants will interview, one at a time, with the
employer team to which they’re assigned. Employers will work together in teams of
three. This exercise is designed for an 80 minute class session but can easily be
modified to accommodate other situations.
* * *
Information and Instructions for Applicants:
You are looking to get hired at a small investment bank. You are one of only three or
four potential job applicants to this firm (at least for this round of hiring). You are a
“green” recruit straight out of college with only the skills and qualifications you truly
possess (that is, you aren’t role playing another person, you are just role playing the
situation as yourself given this set up). Although you know that the firm will not be
making any offers today (today is just a first interview screening process) you’ve heard
through the grapevine that this firm typically pays new recruits up to $80,000 their first
year (plus a possible bonus).
1. Take 15 minutes to generate your resume (this will be used only to communicate
with the hiring agents, they won’t see what you have written directly). How will
you market yourself? What makes you unique? How will you add to the diversity
of the organization? What are the questions that you expect to be asked and
what will constitute good answers?
2. Wait outside your breakout room door until you are called in to interview by the
employers.
3. Interview
4. When you finish interviewing, step out of your role as an applicant. Assess how
well the hiring team did. Did they ask valuable questions? Did they use their
limited time with you well? Were they professional in their demeanor? Were you
treated with respect? Do you feel that they could make an educated decision
with the information they gathered from you? Did you feel that they valued your
potential contribution to their organization’s diversity?
Information and Instructions for Employers:
You are part of the HR staff at a small investment bank. You will be working in a group
of three to evaluate a number of potential applicants to your firm. You are interested
specifically in hiring “green” recruits straight out of college due to the fact that they are
Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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very enthusiastic, generally do what they’re told, and work for cheap. You need workers
with people skills and general business savvy but you aren’t looking for people from any
given business discipline (i.e., you don’t care whether your applicants come from
finance, marketing, etc.) because your firm has needs in all areas. Although you will not
be making any offers today (today is just a first interview screening process) you know
that you can pay your new recruits up to $60,000 their first year (plus a possible bonus)
but would prefer to get them for closer to $45,000.
1. Take 15 minutes to generate your hiring criteria as a group. What are you
looking for? What are the questions that you will ask and what will constitute
good answers?
2. Call in your first job applicant. Interview this person for 12 minutes, recording
your impressions of his or her interviewing skill and qualifications. This is a
verbal interview, do not ask to look at the applicant’s resume. Thank your
applicant and dismiss him or her.
3. Repeat this process until you have interviewed all of your applicants (typically 3
people).
4. What is your hiring recommendation? Did the applicant’s potential contributions
to the diversity of your organization influence your judgments?
SUPPLEMENTAL LECTURETTE 1 – DIVERSITY DEVELOPMENT1
APPLICATION
This lecturette may be used to supplement the chapter’s coverage of managing
diversity. It provides suggestions for implementing successful diversity programs.
* * *
Developing and implementing a successful diversity program is a daunting task. The
steps described below help managers conceive and answer the appropriate questions
that need to be addressed when formulating and carrying out a diversity plan. They are:
Discover diversity problems in your organization. Obtaining current, accurate
information regarding diversity issues is the first step toward finding effective solutions.
Substituting hard data for assumptions helps ensure the appropriate solutions are
sought. Although statistical data are ultimately necessary, they only represent part of
the picture. Perceptions are important too. Perceptions help managers discover
problems and possible solutions. Surveys, interviews, and focus groups are three
principle methods by which one can investigate employees’ perceptions. For example,
when Wisconsin Power & Light surveyed employees, it discovered employees didn’t
understand WP&L’s definition of diversity or the company’s expectations from them
1 Adapted from Ann M. Morrison, The New Leaders: Leadership Diversity in America, 1996, Jossey-Bass Publishers:
San Francisco; Nancy L. Mueller “Wisconsin Power and Light’s Model Diversity Program,” March 1996, Training &
Development, Vol. 50 No. 3, pp. 57-60.
Chapter 02 – Managing Diversity: Releasing Every Employee’s Potential
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regarding diversity. In response, the definition and expectations were incorporated into
the diversity training program and highlighted in internal corporate communications.
A team or task force is generally put in charge of the investigation, and must start off by
making a several key decisions. For example, they must decide whether to gather
information using internal staff or outside professionals (employees may feel more
comfortable talking with outsiders) and whose opinions will be solicited (when in doubt,
survey a base that’s too broad rather than too narrow).
Strengthen top-management commitment. Top management must view diversity as
a key business issue. That is, recognize that diversity is an important aspect of the
organization’s ability to successfully compete in today’s and tomorrow’s business
environment. Top managers can demonstrate their commitment by allocating sufficient
resources to diversity issues, recognizing that diversity is a long-term effort, reminding
managers to focus on diversity goals, and meeting with diverse employee groups.
Finally, top managers must realize that diversity progress rests not only upon their
efforts, but on efforts throughout the organization. This entails making diversity a
pervasive part of the organizational culture.
Choose solutions that fit your organizational strategy. A vast array of diversity
practices exist. Deciding which practices best meet the needs of your organization is
difficult and complex. For example, if the primary diversity goal is that of leadership
development, a different solution is likely necessary than if the primary goal is targeted
recruitment of nontraditional managers. Solutions must match the organization’s data
and culture. Without a careful match, potential solutions may be too general, or spread
too thin to accomplish results. The chosen solutions should incorporate all three
components of a diversity strategy: education, enforcement, and exposure. Education
is geared toward increasing the sensitivity of majority group members and also to better
prepare nontraditional managers for career advancement. Enforcement of standards
helps ensure that at least the most blatant forms of differential treatment will be quickly
addressed. Exposure involves interaction among traditional and nontraditional peer
employees within the organization. Such exposure helps some traditional managers
overcome stereotypic beliefs. Finally, when agreeing upon the appropriate solutions,
the diversity task force should consider the need to reach as many employees as
possible with each solution and provide training and preparation for each solution.
Demand results and revisit goals. Numerical goals and objective measures are
needed to encourage managers to focus on results instead of effort or intent. Of
course, the statistical measures can be supplemented with other outcome measures
such as employee attitudes and perceptions. The demands placed on managers
should be concordant with the control they have over outcomes.
Use building blocks to maintain momentum. Top management should plan beyond
the short-term impact of diversity practices. Building on progress already made can
accelerate the implementation of diversity practices. Although race and gender may be
the most commonly addressed diversity dimensions, a strong diversity program can
extend diversity and incorporate other relevant primary or secondary diversity
dimensions.